Reconstructed as Fast Escort, reconstruction completed on 14 June 1939.

HMS Wallace served mainly on British east coast escorting coastal convoy's except for a brief period in 1943 when she went to the Mediterranean for the invasion of Sicily. On 16 March 1945 she collided with HMS Farndale off the Humber and considered not worth repairing she was paid off. Being sold to be broken up for scrap 4 days later.

16 Mar 1945HMS Wallace (Lt.Cdr. R.S. Hopper, DSC, RN) collided with HMS Farndale (Cdr. E.G. Roper, DSO, DSC, RN) off the Humber and considered not worth repairing she was paid off. Being sold to be broken up for scrap four days later.